Overstock uses cookies to ensure you get the best experience on our site.
If you continue on our site, you consent to the use of such cookies.
Learn more
.

Naked Short Selling

Patrick Byrne is a leading voice in a growing movement convinced that powerful interests on Wall Street are destroying American companies for profit - robbing investors and destabilizing our financial system in the process.

Because Regulation SHO, the SEC's half-hearted attempt to reduce illegal naked shorting, is itself a failure, Patrick actively supports state and federal legislative efforts to end illegal naked short selling.

Patrick helped craft a pair of lawsuits filed by Overstock.com shareholders against the miscreants whose strategic, illegal naked shorting has kept companies like Overstock.com on the Reg SHO list for over two years now.

The first lawsuit, filed in August of 2005 against Rocker Partnershedge fund and so-called independent research firm Gradient Analytics, claims libel, unfair business practices and tortuous interference. The suit is based largely on the affidavits of three former Gradient Analytics employees who affirm, under oath, that Gradient Analytics published false and misleading research that was in fact prepared by associates of David Rocker, principal of Rocker Partners hedge fund. The suit further alleges that Rocker Partners expected to profit from the drop in Overstock.com's share price that resulted when Gradient Analytics published the tainted research.

The second lawsuit, filed in January of 2007 against 12 Wall Street prime brokerages, claims a massive, illegal stock market manipulation scheme based on naked short selling: brokers lending shares they don't posses to short sellers with no intention of covering their illegal short positions to begin with; resulting in a dangerous build-up of persistent delivery failures. Economists agree that this sort of strategic failure to deliver is commonplace, targeted, responsible for depressing target companies' share prices, and potentially destabilizing to America's financial system.

Shop Overstock.com and find the best online deals on everything for your home. We work every day to bring you discounts on new products across our entire store. Whether you're looking for memorable gifts or everyday essentials, you can buy them here for less.

Eziba® | Shop Eziba.com®

O.com®

Over half a million prices checked each week. Overstock.com strives to deliver the lowest prices and the biggest savings on all the products you need for your home.